iSoftTech, owned by Analog Devices founder Raymond Stata, had a top line of $2.2 million in 05 and employed over 110 people at its Chennai center. Rajiv Mody, chairman & CEO, Sasken said that the deal would be funded from the $20 million it raised through a private placement prior to its IPO last year.

The deal will add the Chennai development center to its existing facilities at Bangalore and Pune. Besides, it will get iSoftTechs customers and expertise in data networking, VoIP and wireless segments. We see an excellent strategic fitment with their operations, he said.

iSoftTech will operate as a Sasken subsidiary in Chennai. Mody said the acquisition would augment its offerings to existing customers. Ideally, we would like to have about 10 percent of our total employee strength in Chennai. But the time frame is yet to be decided, he said. The $54 miliion Sasken employs 2,800 people at present.

Mody said the acquisition would augment its offerings to existing customers. It will also help it differentiate service offerings by leveraging iSoftTechs products.

Their deep domain expertise and skills will also help us make a strong foray into offerings in the datacom domain, he said.